Spirit AeroSystems is reducing its workforce as the company addresses financial challenges and decreased production at its main customer, Boeing.
The memo stated that approximately 400 employees would be affected.
Spirit AeroSystems to Lay Off Over 400 Workers
As production declines due to lower output of 737 MAX jets following a January mid-air blowout on a Boeing plane, Spirit has already taken steps to limit overtime and hiring.
Boeing has faced a series of challenges in recent months, such as the unexpected incident where the metal door plug of an Alaska Airlines jet blew out at 16,000 feet, Reuters reported.
Allegations from whistleblowers regarding quality assurance oversights on the company's 737 Max 9 jets have resulted in an FAA investigation and the subsequent worldwide grounding of the aircraft in January.
Boeing Faces Losses, CEO Transition Amid Challenges
Boeing reported a net loss of $355 million in the first quarter, and CEO Dave Calhoun revealed in March his plans to step down at the end of the year.
According to Independent, the company has faced significant challenges, as evidenced by Spirit's recent announcement of a $616.7m loss in the first quarter.
This loss coincided with Boeing's decision to temporarily slow down 737 production in order to implement additional safety measures.
Joshua Dean, previously employed quality auditor at Spirit AeroSystems, which was spun off from Boeing in 2005, was one of the individuals who publicly raised concerns about Boeing leadership's alleged disregard for manufacturing defects in the 737 Max.
Dean filed a complaint with the FAA, claiming that senior quality management at the 737 production line at Spirit engaged in serious and gross misconduct.
During his testimony, he revealed that the company had kept investors in the dark about Spirit's extensive and ongoing quality issues.
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